OKX Picks Malta Over France as Europe Hub to Comply With EU's MiCA Crypto Rules: Sources

OKX previously said in May 2023 that France would be its preferred European hub. "Compliance in Malta is way more lenient," said a person with direct knowledge of OKX's EU regulatory efforts.

Cryptocurrency exchange OKX (OKB) is setting up the Mediterranean island of Malta as its European base for regulatory compliance with the Markets in Crypto Assets (MiCA) framework, according to two sources familiar with the matter.

The move comes after OKX stated in May 2023 that France would be its preferred European hub. Its French arm has been registered with the Autorité des marchés financiers (AMF) since December.

However, according to a person with direct knowledge of OKX's EU regulatory efforts, "Compliance in Malta is way more lenient, and that's not the tag you want to have when you're in crypto and trying to make it in the EU."

OKX declined to comment on the Malta decision.

To prepare for the upcoming MiCA rules, companies are seeking registration with one of the 27 European Union nations. These rules require firms to obtain a crypto asset service provider (CASP) license from an EU nation to operate throughout the bloc.

Before obtaining the CASP license, firms must have a physical presence in the nation, conduct some business there and be already registered.

While MiCA's stablecoin rules are already in effect, the remaining rules will be implemented in December.

In recent years, Malta, which already hosts numerous gaming companies and some investment firms, has shown interest in crypto.

The Malta Financial Services Authority (MFSA) updated its regulations for crypto companies in late 2023 to align them with the upcoming MI CA regime.

The exchange is currently advertising for several senior roles in Malta, including head of compliance, operations lead and head of internal audit.

Earlier this year, OKX reached a "goodwill" settlement of EUR 304,000 (around $329,000) with the Maltese financial regulator over certain regulatory breaches.

Camomile Shumba contributed to this report.

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Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.